USDCHF has been on a strong Bearish trend. The price has kept making lower lows. The first H4 candle today was a Bearish Doji candle and the immediate next one was a strong Bearish candle. That also made a breakout at yesterday’s lower low. Thus, if the pair produces an H1 Bearish Engulfing Candle at the breakout level today, then selling the pair would get us some green pips. Let us have a look at the H4 USDCHF chart.
USDCHF Price Action Analysis – 16th Feb 2018
Have a look at the H4 Bearish ride. The price made a breakout at the last lower low on the chart. Moreover, it made a breakout at 0.92100 today. If the price goes back to the breakout level and produces an H1 Bearish Engulfing Candle, then the price would come down to the level of 0.91620 without having that many pauses. Let us have a look at the summary of the trade…
- Sell Limit Order: 0.92100
- Stop Loss: 0.92250
- Take Profit: 0.91620
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
Since it is the last day of this trading week, so we have to make sure that the H1 Bearish candle comes out as a solid Engulfing candle without having a long wick. If the candle comes out as an inside bar, then I would recommend that we should not take the entry. We have fewer hours to let the trade run today, so it has to be fast paced to reach our target. Only an Engulfing reversal candle usually pushes the price faster.
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